Third-party motor insurance premiums for private cars and two-wheelers have been increased by 16-30%, effective April 1, 2015.
The revised rates are significantly lower than the 100% hike proposed in a draft circular issued last month. Insurance premium caps for commercial vehicles have been raised 8-20% and have even come down in some categories.
Third-party motor tariffs are fixed by the Insurance Regulatory and Development Authority of India (IRDA). The increase in rates means that buyers may need to pay `822 more for big cars and `266 more for mid-size ones. Renewal rates will also rise. There is no cap on the compensation that a victim can claim in case of an accident, but there is a limit on third-party premiums. Insurers want this cap removed so that they can charge according to the risk undertaken.
Source:- The Economic Times (Mumbai)
Date:- 6th April,2015